Andretti Company has a single product called a Dak. The company normally produces and sells 121,000 Daks each year at a selling price of $48 per unit. The company’s unit costs at this level of activity are given below:

Assume that Andretti Company has sufficient capacity to produce 163,350 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 35% above the present 121,000 units each year if it were willing to increase the fixed selling expenses by $150,000. What is the financial advantage (disadvantage) of investing an additional $150,000 in fixed selling expenses?

Direct materials	$	6.50
Direct labor		9.00
Variable manufacturing overhead		3.60
Fixed manufacturing overhead		5.00	($605,000 total)
Variable selling expenses		1.70
Fixed selling expenses		5.50	($665,500 total)
Total cost per unit	$	31.30